Kenneth Arrow’s seminal 1963 article “Uncertainty and the Welfare Economics of Medical Care,” published in the American Economic Review, is widely regarded as the origin of health economics. The health economics field that has emerged in the subsequent 50 years has become a collection of...

Frontmatter -- CONTENTS -- Foreword -- Preface -- Kenneth Arrow and the Changing Economics of Health Care: ‘‘Why Arrow? Why Now?’’ -- Uncertainty and the Welfare Economics of Medical Care (American Economic Review, 1963) -- PART I Supply, Demand, and Health Care Competition -- General...

A dynamic model of the firm is worked out, which pays special attention to a delayed adjustment of employment, investment, and the production technology. A three-step decision structure is assumed, with short-run adjustment of output, medium-run adjustment of employment, and long-run adjustment...